The move comes after Polished Prices took industry feedback on a discussion paper co-authored by ABN Amro, Tel Aviv-based Bank Leumi, Mumbai-based ICICI Bank and Bloomberg. The paper encouraged debate on the contents of any underlying index benchmark, but specifically proposed a basket with a present value of around $3,000. Ideas for physically deliverable contracts were also mooted, although Polished Prices said these would take longer to produce. The data provider already offers several non-tradable indexes through its website and the Reuters and Bloomberg trading platforms.
Isda said it was too early to comment on its involvement in the project.
(See also: First moves on diamond derivatives)